Order-handling inventory management system and method

ABSTRACT

An order-handling inventory management system includes a database that is capable of containing information about the products. This information includes availability and location of the products when these products are stored in a warehouse. A radio frequency subsystem uses radio frequencies to detect identificators that are on the products stored in the storage site. An order-receiving-processing subsystem receives orders for products and ascertains from the database the availability and the location of the products in the storage site. A handheld RF scanner, which is part of the radio frequency subsystem, is used to detect the products within the storage site by detecting the identification of the products.

FIELD OF INVENTION

The invention relates to an order-handling inventory management system,and a method of handling orders.

PRIOR ART

The advent of electronic commerce over the internet initially promised alowest way of doing business where customers provide sales orders viathe internet E-commerce promised new levels of profits becausetraditional functions, such as advertising, catalogues, receiving oforders and payments, could be handled electronically via the internet.

However, it has been found that the processing of the sales orders is anarea that adds costs to the operation due to inefficiencies of time. Forinstance, in known warehouse storage systems, time is wasted in locatingthe whereabouts of products in the warehouse, because of the need tovisually inspect the products. Moreover, time is taken up in physicalhandling the products from the time of bringing the products out ofstorage through to shipping. Time is also wasted due to the need tomanually enter data into the order processing system.

The time wastage problems have been partially solved by the use ofbarcode readers which are used to scan the products. However, barcodesrequire a line of sight for the readers to work, which means that theproduct, bearing the barcode, has to be in full view for the barcodereader to work. Thus, the use of barcodes does not avoid the need tosearch for items within a warehouse by having to physically handle theproduct and to open storage boxes to find the products. Moreover, moretime is required to conduct stock takes because of the need to visuallylocate the products in order to use the barcode reader. Occasionally,errors in the database may result in the actual products picked from thestorage site not being the items ordered by the customer. Barcodes arealso dependent on printouts for checking the status of the inventory,which may result in human errors when reading the printouts. Anotherproblem is that, although barcodes are relatively cheap to produce,barcodes can be photocopied and duplicated easily.

Another problem of e-commerce is the cost of handling and shipping.Often, the high shipping costs negate the lower costs of the actualproducts offered for sale by internet. Sometimes, orders consisting of afew books are delivered in boxes that are far larger than necessary. Theextra costs for shipping or posting the unnecessarily large box add tothe overall purchase cost, and decreases the profit margins of thebusiness.

Alternatively, when human judgment is used to select the appropriatesized box for an order, inappropriate choice can be made which wastestime to repack the products into the correct box.

It is an object of the present invention to overcome or at leastameliorate at least one of the problems in the prior art, or to providean alternative to the prior art.

SUMMARY OF INVENTION

According to an aspect of the present invention, there is provided anorder-handling inventory management system for products, including

-   -   a database capable of containing information about the products        including availability and location of the products;    -   a radio frequency subsystem operatively adapted to detect        radio-frequency-detectable identificators that are attachable to        the products stored in one or more storage sites, the products        forming at least part of an inventory; and    -   an order-receiving-processing subsystem for receiving orders for        products and ascertaining from the database the availability and        the location of the products in the one or more storage sites,        which uses the radio frequency subsystem to detect the actual        products within the storage site or sites by detecting the        identificators of the ordered products;    -   wherein the order-receiving-processing subsystem uses the radio        frequency subsystem to detect products contained within a        package to be shipped to verify that the contents of the package        correspond to a received order.

Preferably, packages for containing the products are provided with aradio-frequency-readable package identificator that contains informationon the order. Advantageously the radio-frequency-readable packageidentificator includes information on the contents of a package.

In preferred embodiments, the order may be verified by comparinginformation contained in the package identificator with theidentificators attached to the product or products in the package.

The order-receiving-processing subsystem may generate a mailing labeland/or a packing list for mailing an order and, ideally, the mailinglabel and/or a packing list and/or a packing list is generated onlyafter the contents of the: package have been verified and matched withthe order.

According to another aspect of the present invention, there is providedan order-handling inventory management system for products including:

-   -   a database capable of containing information about the products        including availability and location of the products, and        physical aspects of the products, including one or more of        length, width, thickness, volume or weight;    -   a radio frequency subsystem operatively adapted to detect        radio-frequency-detectable identificators that are attachable to        the products stored in one or more storage sites, the products        forming at least part of an inventory; and    -   an order-receiving-processing subsystem for receiving orders for        products and ascertaining from the database the availability and        the location of the products in the one or more storage sites,        which uses the radio frequency subsystem to detect the actual        products within the storage site or sites by detecting the        identificators of the ordered products.

Preferably, the database includes information on packages for theproducts including volumes and physical dimensions of one or morepackages. The order-receiving-processing subsystem may be operativelyadapted to select a minimum-sized package capable of containing theproduct or products based on the information on the physical aspects ofeach product or products in the order.

Ideally, the selection of the minimum-sized package enables theorder-receiving processing subsystem to calculate a minimum deliverycost required to deliver the package to the customer.

The order-receiving-processing subsystem is preferably connectable tothe Internet to provide on-line customers with interactive informationconcerning the minimum delivery cost.

The order-receiving-processing subsystem may be adapted toelectronically receive orders, and ideally receives the orders via theInternet by the user entering order information into a web-page.

Preferably, the database further includes information stored on each ofthe identificators.

The order-handling inventory management system may include one or moresorting stations and a number of bays, wherein a product is assigned abay at the or each sorting station together with an appropriately sizedpackage for packaging at the assigned bay.

In a preferred embodiment, the radio frequency subsystem includes aportable radio frequency reading device that indicates the location of aproduct in the storage site by detecting the identificator thereof. Theportable reading device may accumulate information for a plurality ofproducts, and preferably is able to upload information from the databasewhich is operatively connectable to the portable reading device via atransmitting means. Advantageously, when a product is removed from itsstorage location, the portable reading device is updated to reflect theproduct as having been picked. Preferably, the portable reading devicedownloads to the database information on the products that have beenpicked via a transmission means.

The products managed by the order-handling inventory management systemmay be books or printed material. Alternatively, the products may be anyone or more of computer parts and components, software, vehicle spareparts, medical products and prescription drugs, video tapes and compactdiscs.

Information on expiry dates of the products may be storable in thedatabase and/or on the identificators to identify and locate productsthat have passed their expiry dates.

In a further aspect of the present invention there, is: provided amethod of handling an order for a product from an inventory, includingthe steps of:

-   -   using an order-receiving-processing subsystem to receive an        order for a product;    -   obtaining information concerning availability and location of        the product from a database containing information about the        product;    -   providing the information concerning location of the product to        a radio frequency subsystem;    -   using the radio frequency subsystem to detect a        radio-frequency-detectable identificator that is attached to the        product stored in one or more storage sites, the product forming        part of the inventory;    -   verifying that a product contained within a package to be        shipped corresponds to the received order by using the radio        frequency subsystem to detect a radio-frequency-detectable        identificator that is attached to the product contained within        the package to be shipped.

Preferably, the method further includes the step of providing thepackage to be shipped with a radio-frequency-readable packageidentificator that contains information on the order. Advantageously,the radio-frequency-readable package identificator includes informationon the contents of the package. The verifying step may include comparinginformation contained in the package identificator with theidentificator attached to the product contained within the package.

In one embodiment the method further includes the step of generating amailing label and/or a packing list and/or a packing list for mailing anorder. It is preferable that the mailing label and/or a packing listand/or a packing list is generated only after the contents of thepackage have been verified and matched with the order.

In yet another aspect, the present invention provides a method ofhandling an order for a product from an inventory, including the stepsof:

-   -   using an order-receiving-processing subsystem to receive an        order for a product;    -   obtaining information concerning availability and location of        the product, and physical aspects of the product, including one        or more of length, width, thickness, volume or weight from a        database containing information about the product;    -   providing the information concerning location of the product to        a radio frequency subsystem;    -   using the radio frequency subsystem to detect a        radio-frequency-detectable identificator that is attached to the        product stored in one or more storage sites, the product forming        part of the inventory.

Preferably, the database includes information on packages for theproducts including volumes and physical dimensions of one or morepackages.

Advantageously, the method further includes the step of selecting aminimum-sized package capable of containing the product. The selectingstep may include calculating a minimum delivery cost requited to deliverthe package to the customer. Preferably, on-line customers, connectedvia the Internet, are provided with interactive information concerningthe minimum delivery cost.

DRAWINGS

In order that the invention might be more filly understood, embodimentsof the invention are described, by way of example only, with referenceto the accompanying drawings, in which:

FIG. 1 illustrates a schematic diagram of a storage site that uses anembodiment of an order-handling inventory management system to handleorders for products stored in the warehouse;

FIG. 2 shows the screen of the handheld radio frequency reader whichshows the whereabouts of a particular book in the warehouse;

FIG. 3 is a sample screen of the uploading and downloading terminalwhere the handheld radio frequency (“RF”) reader uploads and downloadsinformation between the database;

FIG. 4 is a sample screen of a computer monitor at the sorting stationof FIG. 1;

FIG. 5 is a sample screen of a computer monitor at the verificationstation of FIG. 1;

FIG. 6 is an example of a radio frequency box tag, the radio frequencycomponent of the tag being hidden behind the front panel of the box tag;

FIGS. 7A to 7D provide an example of a single continuous flow-chartwhich describes an embodiment of an order-handling inventory management.The information described in and ascertainable from the flow-chart isincluded in the disclosure of exemplary embodiments of the presentinvention; and

FIG. 8 is a block diagram of the embodiment of the order-handlinginventory management system of FIG. 1.

DESCRIPTION OF EMBODIMENTS

Referring to the drawings, FIG. 1 illustrates a schematic diagram of anexemplary embodiment of an order-handling inventory management systemused at a storage site or warehouse. The management system may alsoadapted for a business where the products are stored in one or morestorage sites.

A block diagram of the order-handling inventory management system isshown in FIG. 8.

The example of the inventory management system is described withreference to a book-selling business. The business has a warehouse thatcontains a large number of books forming at least part of the totalinventory of tie business, but the inventory also includes out of stockbooks that can be ordered. The total business inventory may be in onewarehouse, or spread over a number of warehouses in various parts of acountry.

In FIG. 1, books 11 are stored on shelves, pallets or storage racks 10.In these shelves 10, the books (not shown in FIG. 1) may be stored inboxes with the books being hidden from view. When a customer submits anorder for certain books, the task at the warehouse is to locate thebooks in the storage site, and to bring the books to sorting stations 20where the books are packed in boxes for shipping.

Preferably, titles of the same book are kept in the same area in theshelves 10, but in other embodiments, books of the same title may bescattered throughout the warehouse. The use of radio frequency (“RF”)tracking and detection enables copies of books to be located easily,regardless of where they are stored.

Each sorting station 20 has a number of bays 21, 22, 23, 24, 25, 26, onebay being allocated for each customer order. At this bay, the books ofthe order are assembled and packed each into a box 30.

After the box 30 has been packed, the box is taken to a verificationstation 40 where the box is checked to see that the correct books are inthe bon A postage address label also is affixed to the box.

It will now be described how the use of the exemplary inventorymanagement system, using radio frequency devices, has made this overallprocess more efficient.

Identificators

Each book in the warehouse is provided with an identificator 12. Whenthe inventory is spread over a number of warehouses, all the books areprovided with identificators.

In the embodiment, all copies of a particular book title each have theirown unique identification number stored in the identificator. In otherwords, ten copies of the same book require the use of ten differentidentification numbers.

In the embodiment, the identificators are radio frequency identificationtags 50, as seen in FIG. 1. The tags includes a miniature antenna and anEPROM for containing information about the books, such as theidentification number, the book details, and the location of the book inthe warehouse. All this is stored in the EPROM memory that is readableby radio frequency. The tags are passive in tie sense that they have nopower source. One EPROM have the capacity to be “programmed” in thesense that radio frequency waves can be used to change the informationcontained in the EPROM of the tags. When the tags receive radiofrequency waves emitted from the radio frequency subsystem, the tagbecomes “energized” and emits radio waves that carry the informationstored in the EPROM.

Such radio frequency identification tags are provided on the books (“RFbook tags”) and on the shipping boxes used to ship the books to thecustomer (“RF box tags”), which will be described later.

Database

The inventory management system includes a database 70 capable ofcontaining information about all the books. The database, which resideson a computer server, need not be located on the same site as thewarehouses, but maybe connected by network to the various storage sitesaround the country or, indeed, in different countries.

Radio Frequency Subsystem

The inventory management system also includes a radio frequencysubsystem 80 which is able to detect the identificators on the variousproducts in one or more storage sites. The invention is not limited to aparticular configuration of such a radio frequency subsystem, sinceskilled engineers can create a number of modifications which can detectthe identificators on each of the books by means of radio frequencydetection technology.

The radio frequency subsystem includes a number of components that useradio frequency technology to transfer information between the databaseand an order-receiving-processing subsystem.

The radio frequency subsystem includes a handheld RF reader 50, the RFreaders 52 at the sorting stations 20, and the RF reader 54 at theverification station 40.

Order-Receiving-Processing Subsystem

The inventory management system includes an order-receiving-processsingsubsystems 90 which receives orders from customers.

The order-receiving-processing subsystem, upon receiving an order,checks with the inventory management system to check the availability ofthe ordered books in the inventory. If available, the system willinstruct details of the customer's order to be uploaded into thehandheld reader station 60, where the details will be uploaded to thehandheld reader 50. The information that is to be passed from thedatabase to the handheld RF reader will include details of thewhereabouts of the books in the warehouse.

For a nationwide warehousing system, which are found in large e-commercecompanies, the inventory management system can extend across thedifferent warehouses in different states or countries. The inventorymanagement system can check the availability and location of a book inany one of the warehouses. For instance, warehouses are in California,Texas and New York, the inventory management system can identify whichwarehouse has a particular book title, and also where the book is to befound in the warehouse, even down to the shelf location. This ispossible because each book has an identificator that is detectable bythe radio frequency subsystem.

The identificator of each book, even books of the same title, has aunique identification number stored in its EPROM. This unique identitynumber is used for tacking and tracing the book, and for financialaccounting purposes. When a customer's order is placed, the uniqueidentity number stipulates which book is to be assigned to fulfill thecustomer's order.

Database

The inventory management system has an inventory database. When theorder-receiving-processing subsystem receives an order from a customer,it checks with the database whether the particular book is in stock andthe whereabouts of a copy of the requested title.

The order-receiving-processing subsystem is connected to the database inorder to access information in the database.

In the embodiment, the order-receiving-processing subsystemelectronically receives orders from customers, for instance, byinternet.

The database 70 includes information that is stored on eachidentificator tag 12. The data of the tag forms an integral part of thedatabase. As seen in FIG. 8, the radio frequency subsystem enables thedatabase and the order-receiving-processing subsystem to access theinformation contained in the identificator tags.

The database is stored in a computer and includes the following data:—

-   i) A picture catalog of the front cover of the book;-   ii) Dimensions of each book, including volume and weight;-   iii) Part number directly corresponding to the title of the book;-   iv) Part number directly corresponding to the unique identification    numerb stored on the RF identificator tag;-   v) Pallet location or bin location where the book is stored.

The database contains data relating to physical aspects of the books. Inparticular, the length, width, thickness, volume and/or weight of eachbook. Hence, if a particular book is available in more than one edition,each edition is considered as a separate item on the database inventory,since each edition has different physical aspects.

Using the physical information of each book, theorder-receiving-processing subsystem calculates the total volume andweight of the customer's order. For example, if a customer orders fivebooks, the order-receiving-processing subsystem calculates the totallength, width and height of the books of the customer's order (whenstacked), and can ascertain the volume and weight of the total order.This calculation enable the system to match the order with aminimum-sized package that is necessary to contain the order. Thisavoids a situation where unnecessarily large packages are used to shipsquall amounts of product. This minimises shipping costs so that profitmargins of the business can be increased.

The database also contains information on physical aspects of a numberof packages/boxes, such as volume, length, width and height of thevarious boxes. Thus, the order-receiving-processing subsystem matchesthe minimum package required to enclose the order of books. Thus, thepresent embodiment avoids a wasteful practice found in prior artbusiness systems where orders for small numbers of books or products areshipped in boxes that are larger than necessary. The present embodimentselects a minimum sized package so that shipping and postage costs canbe minimized.

In the prior art, e-commerce and mail order businesses often have afixed shipping fees for particular order price ran-es. The use ofstandard shipping fees can increase the cost to such an extent thatthere is no longer any cost advantage when buying products over theinternet. For instance, in the prior art, if one book were to beordered, the standard shipping fee is often a large percentage of thetotal order. Therefore, in the present embodiment, the ability to obtaina shipping cost that is the absolute minimum necessary will enable theshipping costs to be determined on a case-by-case basis, taking intoaccount the physical dimensions and weight of the total order.

When embodiments of the invention are connected to the internet,information of the minimum delivery cost can be provided to on-linecustomers in real time. When a customer orders products via a website,the customer indicates which books are to be ordered. The inventorymanagement system uses the information in the database to ascertain thelocation and availability of the particular titles ordered. Details ofthe physical dimensions and weight of the products are obtained from thedatabase. The order-receiving-processing subsystem calculates theminimum package and shipping costs. This minimum shipping cost istransmitted on-line to the web page for the customer to view in realtime. In other words, e-commerce customers need not pay a standardshipping fee, but can be provided with information concerning theabsolute minimum shipping cost of the order at the time of placing theirorder.

Order Processing

An example will be described of the steps involved with theorder-handling inventory management system. In this embodiment, theorder handling inventory management system is able to be accessed bycustomers either electronically or via the internet. In the case of theinternet, the customer transmits the order for particular books byentering ordering information into a web page.

The book order is received by a web server or directly through a networkserver by electronic data exchange. The internet order is transferred tothe network server through a firewall.

When the order is first received, a credit check is performed on thecustomer's credit card number, either by the order-receiving-handlingsubsystem, or externally.

The order-receiving-subsystem checks the database to see if the orderedbooks are in stock in the warehouse. This is achieved by attempting tomatch the book's part number with a corresponding number in thedatabase. If the book is not in stock, a message is sent to the customerby e-mail asking for consent to partially fulfill the order.

An order number, unique to the particular customer order, is generated.The order number is linked to the customer's name, delivery address andthe ordered items. All this is stored in the database. The order numbertraces the books, for tracking and accounting purposes, and hence mustbe unique.

The order-receiving-processing subsystem assigns one of the bays 20-26to the order number.

Collecting the Products from Storage

Referring to FIG. 1, a collection workman 15 is assigned to collect thebooks from storage. The workman searches for books for a particularsorting station, and retrieves books for all the bays in that sortingstation. To assist the workman with this task, the radio frequencysubsystem includes a product-locating-apparatus that is adapted toprovide the workman with information concerning the whereabouts of eachordered book.

The product-locating apparatus includes the handheld radio frequencyscanner 50. The handheld scanner 50 is able to detect and read theidentificators 12 on the books 11. An RF antenna of the handheld reader50 continually emits radio fluency waves. The identificator 12 on a bookgives a response when it comes within the reading range of the handheldscanner. At any given moment, the antenna of the handheld scanner 50 maybe receiving numerous responses, but will only pick out the response ofthe book 11, or the identity of the book that it is searching for.Identificators are read and processed one at a time by the handheld RFreader 50 (although, to the user, this appears to happensimultaneously), although the identificators are responding to thehandheld reader all at the same time. The RF reader 50 does notsimultaneously process all the identities that it receives.

The collection workman 15 uses the handheld scanner 50 to “upload”information from the database 70. The information from the database istransmitted to the handheld scanner by radio frequency transmission.This happens at the handheld reader station 60 where the scanner 50 isallowed to communicate with the database 70 via a radio frequencyterminal 60. A number of such terminals or reader stations 60 arelocated throughout the warehouse, to make it convenient for the workman15 to upload order information into the handheld scanner 50 from thedatabase via the nearest station 60. The transfer of information betweenthe handheld scanner and the database can occur by cable connection orremote connection such as by infra Red connections.

Thus, the handheld scanner receives uploaded information, obtained fromthe database, that tells the workman of the whereabouts of the book(s)for each order. An example of the information on the handheld scanner's50 screen is shown in FIG. 2. The book's identification (TAG ID) isshown, together with its whereabouts in the warehouse. With thisinformation, the worker walks directly to the correct shelf to collectthe book.

When the collector workman reaches a particular pallet or shelflocation, the workman passes the reader 50 over and around the boxes,and immediately identifies the items of interest. If the identificationcontained in the EPROM of the book tag 12 matches the data in thehandheld reader 50, the reader beeps to indicate that the particularbook is in that box. This avoids the workman having to open the box tosearch for the book. It also avoids the worker having to visuallyinspect the products for the expiry date. Instead, the handheld reader50 enables the worker to go directly to the location of the book box andpick out the item from its container.

Upon the first book being identified on the shelf, the information inthe scanner 50 is automatically modified to indicate that the first bookhas now been “picked”, as in FIG. 2. In other embodiments, thismodification of the scanner's information may require the workman to keyin the modification.

The information in the handheld scanner can include the books of anumber of customer orders. This is more efficient than having thecollector worker 15 go into the warehouse for each customer order.

The system automatically consolidates orders at hourly intervals or atany predetermined interval. The data for the consolidated orders isdownloaded to the handheld scanner 50. To maximise the use of thescanner's memory, only the unique identification numbers of the requiredbooks are downloaded into the handheld reader, so that it can ‘pick’ outthe book.

Post-Collection Updating of the Database

As the collector worker collects the books from the warehouse, he altersthe data in the handheld RF scanner 50 to indicate which books have been“picked”. The information in the handheld scanner is thus becoming moreup-to-date than the database information concerning the whereabouts ofthe books. Hence, after all the books have been collected, in order tosynchronize the information, the worker takes the handheld scanner 50and “downloads” the information into the database, so that the databasehas a record that these books have now been removed from the warehouseshelves.

This synchronization avoids a situation where the database mightindicate that a certain book is in stock, when in fact that book hasbeen removed from the warehouse.

The downloading of the data to the database occurs in the same manner asthe information on books to be collected was initially uploaded from thedatabase.

FIG. 3 is a sample screen of the uploading and downloading terminalwhere the handheld RF reader uploads and downloads information betweenthe database. The screen shows two different modes, one during uploadingand the other during downloading. The screen tells the workman the ordernumber(s) that has been downloaded, the tag identification number, andthe sorting station 20 that the books are to be taken to, as well as thenumber of items downloaded into his reader. The information is similarin respect of the downloading. The purpose of the information is to tellthe database that the items have been collected from the warehouse andare ready for sorting.

After the information has been synchronised, the information that thebooks have been collected causes the sorting station 20 to initiate thesorting process.

Calculation of Appropriate Box Size

While the collector worker 15 is collecting the books from thewarehouse, the system provides the worker 27 at the sorting station withinstructions on what sized box to use. For a given book order, theorder-receiving-processing subsystem draws from the database informationabout the physical size of the ordered book(s). The total volume of theordered books is calculated. The order-receiving-processing subsystemqueries the database for dimensional data on the range of availableboxes, and assigns the minimum-sized box that is necessary to ship theorder.

Each of the box sizes have a code, and the order-receiving-processingindicates the box to be used by displaying the box's code.

The order-receiving-processing subsystem displays on the terminal 54which bay number the box is for. (Each bay is used to receive the booksof a particular order number). The sorting worker 27 obtains therequired box size, and also uses the box tag generator 53 to create abox tag to be attached to the box. A tag is created in the sense thatthe EPROM is programmed with information from theorder-receiving-processing subsystem particularly the order number, andthe printable portion of the tag is printed with pertinent information.

Sorting

The collector worker then brings all the collected books (which are fora number of orders) to the sorting station 20.

The box tag generator 53 is located at the sorting station 20. When thesorting station 20 receives books to be sorted, the tag generator 53prints a box to. The box tag, having the order number printed thereontogether with an RF identificator, is affixed to the box that has beenselected. The system instructs the worker as to which sized-box shouldbe placed at each bay.

At the sorting station, each book is read by an RB reader 52. The RBreader 52 detects the RF book tags 12, and ascertains from theorder-receiving-processing subsystem which in bay each book is to beplaced. As the worker passes each book near the RF reader 52, theorder-receiving-processing subsystem, which is in communication with thedatabase, displays on the monitor 54 the bay number that the worker isto place the book. An example of the display is shown in FIG. 4. Apicture of the book cover is also displayed on the monitor screen 54, sothat the worker can ensue that the right book has been selected. Hence,the workman 27 places the book in bay number three 23. The workmanpasses all the books past the RF reader 52 and, thus is directed toallocate each of the books to the appropriate bays 21-26.

Packing the Products into the Boxes

While one of the workmen 15 is collecting the books from the shelves, hemay be picking books that are for a number of different customer orders,not just one order. All the books from different orders may be mixed.For instance, the workman might collect three copies of a particulartitle, each copy being for a different customer order. (Each copy has adifferent identification). The order-receiving-processing subsystemprovides the worker with information on the whereabouts of the books.

At the same time, the order-receiving-processing is also performinganother task, which is to provide information to the sorting station 20about what books are to go to which bay 21-26, as seen in FIG. 1.

A RF tag generator 53, which is part of the radio frequency subsystem,is used to generate a RF box tag. In other words, the RF reader 52 atthe sorting station programs the EPROM in the RF box tag, and recordsthe information of the books that ought to comprise the order. This RFbox tag is affixed to the box, and acts as a record of what books shouldactually be in the box. FIG. 6 illustrates an example of a RF box tagwhich has a radio frequency detectable component, as well as a printedsurface for displaying information visually. It is in the form of anadhesive label, with printed information on one side, and the RFcomponent on the underside. The RF tag is almost paper thin and isflexible.

After the box has been filled with the complete order, the systemprompts the sorter 27 that the box is complete and ready to be moved onto the verification station 40.

Verification of Order Prior to Shipping

After the box has been filled with the appropriate books, the box istaken to the verification station 40. There, another RF reader 54 firstreads the box tag to ascertain the order number. Then, it draws from thedatabase the details of the books of this order. It then reads the booktags inside the box. By reading both the book tags as well as the boxtag, it can be checked whether the contents in the box matches thecontents of the order. Thus, by comparing the EPROM informationcontained in the book tags with the order information in the database,it is possible to verify that the box contains all the required books.

FIG. 5 shows a sample screen which appears on the monitor at theverification station 40. On the top of the screen 56, details of theorder number are shown. On the left hand side of the screen 56, detailsare drawn from the box tag showing the required order of books (whichwere obtained from the database). On the right hand side of the screen,details are drawn from the book tags 12 inside the box. Thus, a side byside visual comparison can be made to cheek that the required books arein the box, although the comparison occurs electronically.

After verifying the contents, a packing list bearing the order number isprinted which lists the items contained in the box. This automaticallyprompts the generation of a mailing label with postal data drawn fromthe database. The mailing label is pasted onto the box. The packing listis placed in the box and sealed.

In embodiments, the reference can be read directly from the database viaan RF reader. In further embodiments, the data in the box tag may beused as the reference for what should be in the box. In such cases, oncethe box is sealed, the data of the contents of the box would be thenstored into the box tag identificator on the exterior of the box.

Based on the weight and dimensions of the order, theorder-receiving-processing subsystem calculates the postage or couriercharges. Using the information of volume and weight, the system is ableto calculate the charges, depending on whether express, surface orcourier service is required.

At the verification station 40, the status of each book in the databaseis updated to the status of “delivered” and the books are removed fromthe inventory management system. This assists in keeping financialaccounts of the warehouse, because storage charges are incurred up untilthe point when the book is physically removed from the warehouse.

An RF reader can be used, at any point in the shipping process, can beused to check the contents of the box.

The ability to identify products using radio frequency, without the needfor a line of sight, is an advantage because it reduces the amount ofphysical handling of products. Products can be identified by scanningwithout having to open the boxes.

The ability to read a particular identificators in multiples at a timereduced the search time.

The processes of the embodiments can be a paperless processes, and theonly document that needs to be printed is the packing list that is sentto the customer who cannot read the RF identificators.

The embodiments of the invention have been described in terms of books,but the system is applicable to other products particularly those thatare popularly sold over the internet, for example computer parts andcomponents, software, vehicle spare parts, medical products andprescription drugs, video tapes and CD's, to name a few.

The information on the database need not be physically restricted to onelocation. For instance, certain parts of the information can be storedin the identificators rather th on the mass storage of the overallsystem.

In the illustrated embodiments, a collection worker 15 walks around thewarehouse to collect the books. In alternative embodiments, an AutomatedStorage and Retrieval System (A.S.R.S.) may be linked to theorder-handling inventory management system. This means that rather thana worker collecting the books from a particular pallet, that particularpallet is automatically brought to the worker, for example, bymechanical cranes or an appropriate automated system.

Other embodiments of the present invention are able to be adapted toconducting stock takes of the inventory of a warehouse. Rather thancollecting information on specific books, the handheld scanner gatheringinformation on all the books in the warehouse. The stock take isconducted by comparing gathered information with the databaseinformation.

Embodiments of the system can be used for quickly crating inventorylists. Missing items in the warehouse can be located readily usingembodiments of the invention.

Modifications of the invention can be used to control inventory levelshaving regard to the shelf life of products. The information on expirydates can be stored in the main server of the database. When the expirydates draw near, the system can prompt the expiry date data to beuploaded into the handheld RF reader, which enables the workers tolocate the products that are soon to expire. Out of date items can bereadily located. This is useful for pharmaceuticals and first aid kitswhere medicines have a limited expiry date.

Alternatively, in other embodiments, the expiry date information mayreside in the identificators themselves. The inventory management systemwould obtain information from the tags that related to when the productswill expiring without needing to obtain the containers.

The storage site may be a fulfillment centre for telemarketing,e-commerce purchases, or where components are assembled as kits ofparts.

The identificator tags can be tags that simply emit radio frequency, orcan be tags that transmit as well as receive radio frequency.

The embodiments have been advanced by way of example only, andmodifications are possible within the scope of the invention as definedby the appended claims.

1. An order-handling inventory management system for products,including: a database capable of containing information about theproducts including availability and location of the products; a radiofrequency subsystem operatively adapted to detectradio-frequency-detectable identificators that are attachable to theproducts stored in one or more storage sites, the products forming atleast part of an inventory; and an order-receiving-processing subsystemfor receiving orders for products and ascertaining from the database theavailability and the location of the products in the one or more storagesites, which uses the radio frequency subsystem to detect the actualproducts within the storage site or sites by detecting theidentificators of the ordered products; wherein theorder-receiving-processing subsystem uses the radio frequency subsystemto detect products contained within a package to be shipped to verifythat the contents of the package correspond to a received order.
 2. Asystem according to claim 1 wherein packages for containing the productsare provided with a radio-frequency-readable package identificator thatcontains information on the order.
 3. A system according to claim 2wherein the radio-frequency-readable package identificator includesinformation on the contents of a package.
 4. A system according to claim2 or 3 wherein the order can be verified by comparing informationcontained in the package identificator with the identificators attachedto the product or products in the package.
 5. A system according to anyone of the preceding claims wherein the order-receiving-processingsubsystem generates a mailing label and/or a packing list for mailing anorder.
 6. A system according to claim 5 wherein the mailing label and/ora packing list is generated only after the contents of the package havebeen verified and matched with the order.
 7. An order-handling inventorymanagement system for products, including: a database capable ofcontaining information about the products including availability andlocation of the products, and physical aspects of the products,including one or more of length, width, thickness, volume or weight; aradio frequency subsystem operatively adapted to detectradio-frequency-detectable identificators that are attachable to theproducts stored in one or more storage sites, the products forming atleast part of an inventory; and an order-receiving-processing subsystemfor receiving orders for products and ascertaining from the database theavailability and the location of the products in the one or more storagesites, which uses the radio frequency subsystem to detect the actualproducts within the storage site or sites by detecting theidentificators of the ordered products.
 8. A system according to claim 7wherein the database includes information on packages for the productsincluding volumes and physical dimensions of one or more packages.
 9. Asystem according to claim 7 or 8 wherein, based on the information onthe physical aspects of each product or products in the order, theorder-receiving-processing subsystem is operatively adapted to select aminimum-sized package capable of containing the product or products. 10.A system according to claim 9 wherein the selection of the minimum-sizedpackage enables the order-receiving-processing subsystem to calculate aminimum delivery cost required to deliver the package to the customer.11. A system according to claim 10 wherein theorder-receiving-processing subsystem is connectable to the Internet toprovide on-line customers with interactive information concerning theminimum delivery cost.
 12. A system according to any one of thepreceding claims wherein the order-receiving-processing subsystem isadapted to electronically receive orders.
 13. A system according toclaim 12 wherein the order-receiving-processing subsystem receives theorders via the Internet by the user entering order information into aweb-page.
 14. A system according to any one of the preceding claimswherein the database further includes any information stored on each ofthe identificators.
 15. A system according to any one of the precedingclaims including one or more sorting stations and a number of bays,wherein a product is assigned a bay at the or each sorting stationtogether with an appropriately sized package for packaging at theassigned bay.
 16. A system according to any one of the preceding claimswherein the radio frequency subsystem includes a portable radiofrequency reading device that indicates the location of a product in thestorage site by detecting the identificator thereof.
 17. A systemaccording to claim 16 wherein the portable reading device accumulatesinformation for a plurality of products.
 18. A system according to claim16 or 17 wherein the portable reading device uploads information fromthe database which is operatively connectable to the portable readingdevice via a transmitting means.
 19. A system according to any one ofclaims 16 to 18 wherein when a product is removed from its storagelocation, the portable reading device is updated to reflect the productas having been picked.
 20. A system according to claim 19 wherein theportable reading device downloads to the database information on theproducts that have been picked via a transmission means.
 21. A systemaccording to any one of the preceding claims wherein the products arebooks or printed material.
 22. A system according to any one of thepreceding claims wherein the products are any one or more of computerparts and components, software, vehicle spare parts, medical productsand prescription drugs, video tapes and compact discs.
 23. A systemaccording to any one of the preceding claims wherein information onexpiry dates of the products are storable in the database and/or on theidentificators to identify and locate products that have passed theirexpiry dates.
 24. A method of handling an order for a product from aninventory, including the steps of: using an order-receiving-processingsubsystem to receive an order for a product; obtaining informationconcerning availability and location of the product from a databasecontaining information about the product; providing the informationconcerning location of the product to a radio frequency subsystem; usingthe radio frequency subsystem to detect a radio-frequency-detectableidentificator that is attached to the product stored in one or morestorage sites, the product forming part of the inventory; verifying thata product contained within a package to be shipped corresponds to thereceived order by using the radio frequency subsystem to detect aradio-frequency-detectable identificator that is attached to the productcontained within the package to be shipped.
 25. A method according toclaim 24, further including the step of providing the package to beshipped with a radio-frequency-readable package identificator thatcontains information on the order.
 26. A method according to claim 25wherein the radio-frequency-readable package identificator includesinformation on the contents of the package.
 27. A method according toclaim 25 or 26 wherein the verifying step includes comparing informationcontained in the package identificator with the identificator attachedto the product contained within the package.
 28. A method according toany one of claims 24-27 further including the step of generating amailing label and/or a packing list for mailing an order.
 29. A methodaccording to claim 28 wherein the mailing label and/or a packing list isgenerated only after the contents of the package have been verified andmatched with the order.
 30. A method of handling an order for a productfrom an inventory, including the steps of: using anorder-receiving-processing subsystem to receive an order for a product;obtaining information concerning availability and location of theproduct, and physical aspects of the product, including one or more oflength, width, thickness, volume or weight from a database containinginformation about the product; providing the information concerninglocation of the product to a radio frequency subsystem; using the radiofrequency subsystem to detect a radio-frequency-detectable identificatorthat is attached to the product stored in one or more storage sites, theproduct forming part of the inventory.
 31. A method according to claim30 wherein the database includes information on packages for theproducts including volumes and physical dimensions of one or morepackages.
 32. A method according to claim 30 or 31 further including thestep of selecting a minimum-sized package capable of containing theproduct.
 33. A method according to claim 32 wherein the selecting stepincludes calculating a minimum delivery cost required to deliver thepackage to the customer.
 34. A method according to claim 33 wherein theselecting step includes providing on-line customers, connected via theInternet, with interactive information concerning the minimum deliverycost.